Minimum salary hikes subsequent year will cost grocery sequence Metro adult to $50M, association says
Ontario’s new preference to travel a smallest salary to $15 an hour would cost Metro tens of millions of dollars next year and put pressure on a whole industry, a grocery chain’s CEO pronounced Tuesday.
In divulgence a quarterly results, a sequence pronounced it would be exerting “Â strong control” over a losses in a entrance year, citing salary increases as a vital cause in a outlook.
“The announced smallest salary boost in Ontario will put poignant vigour on a attention in 2018,” Eric R. La Fleche said.
“We guess a impact of a boost in a smallest salary recently announced in Ontario to be approximately $45 to $50 million on an annualized basis.”
The comments come on a heels of identical ones from other retailers who contend rising salary will widen their skinny margins and even put many out of business.
Metro opposition Loblaw pronounced final month that it expects rising salary pressures will cost it $190 million subsequent year.
Metro gave a warning on salary costs as it suggested quarterly formula for a three-month duration finished Jul 1, during that a chain’s net income rose 3.7 per cent, or $4.5 million, compared to a same time final year, during $183 million or 78 cents per share.
Metro’s altogether sales edged adult 1.4 per cent or $58.7 million to $4.07 billion, though same-store sales forsaken 0.2 per cent.
Article source: http://www.cbc.ca/news/business/minimum-wage-metro-1.4247721?cmp=rss